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RBI Introduces The Financial Inclusion Index, Here Is All You Need To Know

The FI-Index has been conceptualized as an exhaustive list joining details of the investment, banking, postal insurance, and pension sector in consultation with the union government and the regulators from the respective sectors.

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The Reserve Bank of India on Tuesday said that the central bank has introduced the financial inclusion index (FI-Index) to assess the extent of financial inclusion in India. 

This announcement by the RBI came as a part of the first bi-monthly monetary policy, it was announced in April 2021. 

The Reserve Bank of India in a statement said, "As announced in the Statement on Developmental and Regulatory Policies in the First Bi-monthly Monetary Policy Statement for 2021-2022 dated April 07, 2021, the Reserve Bank of India has constructed a composite Financial Inclusion Index (FI-Index) to capture the extent of financial inclusion across the country."

The FI-Index has been conceptualized as an exhaustive list joining details of the investment, banking, postal insurance, and pension sector in consultation with the union government and the regulators from the respective sectors.

Talking about the Index, it is receptive to ease of access, availability, utilisation of services, and quality of services, comprising all 97 pointers. An interesting element of the Index is the Quality parameter which catches the quality part of financial inclusion as reflected by financial literacy, protection of consumers, and disparities and inadequacies in services.

"The FI-Index has been constructed without any ‘base year’ and as such it reflects cumulative efforts of all stakeholders over the years towards financial inclusion. The annual FI-Index for the period ending March 2021 is 53.9 as against 43.4 for the period ending March 2017. The FI-Index will be published annually in July every year," RBI further added. 


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reserve bank of india union government